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  #41  
Old 31.05.2011, 17:47
Nev
 
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

Look, it's your thread so it's up to you where you take it and the tone you set. But there's no point moaning and groaning when people try and engage you. I still think you're confused between trading strategies and risk management. In fact I'm not at all sure you understand portfolio risk management.

By the way, one thing I've learned over the years is, just because something's cheap doesn't mean it's mispriced. And I don't need fat tail insurance against Greece, Ireland or Portugal because I avoided them like the plague. Sometimes dodging the bullets is the best protection there is.

I'm out of here. The cost/benefit of discussing this with you ain't in my favour.
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  #42  
Old 31.05.2011, 18:20
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

Zuger, I'd recommend two books for you;

http://www.amazon.com/Fooled-Randomn.../dp/1587990717
and
http://www.amazon.co.uk/Alexs-Advent.../dp/0747597162

Might help you to see the flip side of the coin (no pun intended)
(and if you don't see why there could be a pun, you really need to read these).
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  #43  
Old 31.05.2011, 18:35
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

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I still think you're confused between trading strategies and risk management. In fact I'm not at all sure you understand portfolio risk management.

By the way, one thing I've learned over the years is, just because something's cheap doesn't mean it's mispriced.
Perhaps this isnt the best arena to discuss such things to begin with. If it were a real discussion I could obviously give a better idea of the timing/thinking of this protection without having people spew seemingly academic responses. But its not.

I figured the post would lead to "why the world is rosy" because thats the only thing that would keep these guys from owning protection. Instead I got a long only bond guy telling me he will take an extra 80bps on his NAV.

If it were a trading strategy then 100% of our portfolio would be in it, and its not. Its risk management because we understand the risks and are exposed to them (The patriarch of the FO is from Spain). But if you study them you realize that its not just Spain anymore. Its everything you trade. And its all based on the business cycle, which is today based on government spending.

But on an EF thread, with people who might not understand what I am trying to say, it becomes ugly.
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  #44  
Old 31.05.2011, 19:34
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

since we're talking protection, has anyone had experience buying CHF LIBOR warrant caps? i've seen the product info advertised on UBS but not sure what stuff can be easily bought e.g. through swissquote.
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  #45  
Old 31.05.2011, 19:50
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

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since we're talking protection, has anyone had experience buying CHF LIBOR warrant caps? i've seen the product info advertised on UBS but not sure what stuff can be easily bought e.g. through swissquote.
Cant help... Dont normally trade CHF Rates. What bet are you trying to make exactly?
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  #46  
Old 01.06.2011, 00:39
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

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Cant help... Dont normally trade CHF Rates. What bet are you trying to make exactly?
just trying to hedge interest rate risk.
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  #47  
Old 01.06.2011, 00:44
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Re: Do Family Offices And Banks Have Fat-Tail Risk Protection?

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just trying to hedge interest rate risk.
Buy CDS's....

NO NO! That was a joke for Nev.... Just kidding..... Good luck with your hedge.
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